Critical Survey: Installed Building Products (NYSE:IBP) & Hillman Solutions (NASDAQ:HLMN)

Installed Building Products (NYSE:IBP) and Hillman Solutions (NASDAQ:HLMN) are both construction companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.

Earnings and Valuation

This table compares Installed Building Products and Hillman Solutions”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Installed Building Products	$2.97 billion	2.43	$265.40 million	$9.73	27.49
Hillman Solutions	$1.55 billion	1.04	$40.31 million	$0.21	38.95

Installed Building Products has higher revenue and earnings than Hillman Solutions. Installed Building Products is trading at a lower price-to-earnings ratio than Hillman Solutions, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Installed Building Products has a beta of 1.97, meaning that its share price is 97% more volatile than the S&P 500. Comparatively, Hillman Solutions has a beta of 1.63, meaning that its share price is 63% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Installed Building Products and Hillman Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Installed Building Products	2	10	0	0	1.83
Hillman Solutions	0	3	4	0	2.57

Installed Building Products currently has a consensus target price of $265.20, suggesting a potential downside of 0.87%. Hillman Solutions has a consensus target price of $11.33, suggesting a potential upside of 38.55%. Given Hillman Solutions’ stronger consensus rating and higher probable upside, analysts clearly believe Hillman Solutions is more favorable than Installed Building Products.

Profitability

This table compares Installed Building Products and Hillman Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Installed Building Products	8.93%	43.71%	14.58%
Hillman Solutions	2.60%	9.57%	4.91%

Insider & Institutional Ownership

99.6% of Installed Building Products shares are owned by institutional investors. Comparatively, 98.1% of Hillman Solutions shares are owned by institutional investors. 16.2% of Installed Building Products shares are owned by insiders. Comparatively, 4.9% of Hillman Solutions shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Installed Building Products beats Hillman Solutions on 10 of the 14 factors compared between the two stocks.

About Installed Building Products

Installed Building Products, Inc., together with its subsidiaries, engages in the installation of insulation, waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving and mirrors, and other products in the United States. It operates through Installation, Distribution, and Manufacturing operation segments. The company offers a range of insulation materials, such as fiberglass and cellulose, and spray foam insulation materials. It is also involved in the installation of insulation and sealant materials in various areas of a structure, which includes basement and crawl space, building envelope, attic, and acoustical applications. In addition, the company installs a range of caulk and sealant products that control air infiltration in residential and commercial buildings; and waterproofing options, including sheet and hot applied waterproofing membranes, as well as deck coating, bentonite, and air and vapor systems. Further, it distributes spray foam insulation, metal building insulation, residential insulation, and mechanical and fabricated Styrofoam insulation, as well as accessories and equipment used in the insulation installation process; and manufactures cellulose insulation and specialty industrial fibers. It serves homebuilders, multi-family and commercial and agricultural construction firms, individual homeowners, and repair and remodeling contractors. The company was formerly known as CCIB Holdco, Inc. Installed Building Products, Inc. was founded in 1977 and is based in Columbus, Ohio.

About Hillman Solutions

Founded in 1964 and headquartered in Cincinnati, Ohio, Hillman is a leading North American provider of complete hardware solutions, delivered with industry best customer service to over 40,000 locations. Hillman designs innovative product and merchandising solutions for complex categories that deliver an outstanding customer experience to home improvement centers, mass merchants, national and regional hardware stores, pet supply stores, and OEM & Industrial customers. Leveraging a world-class distribution and sales network, Hillman delivers a “small business” experience with “big business” efficiency.